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Statement on the Novel Coronavirus (2019-nCoV) and it’s impact on the Reliance Medical Supply Chain

During this Chinese New Year period, we have been watching with concern the developments around the 2019-nCoV Coronavirus in China. The health and well being of our colleagues at our Chinese subsidiary based in Shanghai has been at the forefront of our minds.

The New Year period is typically a time of celebration during which most businesses close and people travel across China to reunite with family. As such, Reliance Medical Shanghai closed on 22nd January and had been planning to return on 3rd February – which coincided with the end of the additional 3 days national holiday ordered by the Chinese government.

As a business we have taken the decision to extend the closure of our Shanghai factory until 10th February and have contacted all our staff. Fortunately, to date, none of our team have contracted the virus and we have confirmed that none travelled to the Hubei province during their holidays.

As a manufacturer of medical products, we have in place strict controls to reduce the risk of contamination and spread of disease; in preparation for the factories return to work we have re-evaluated these measures and taken steps to further reduce the risk to our team and our production.

We have evaluated our supply chain and established that the majority of our raw materials are sourced from the Shanghai area, with only one supplier in the Hubei Province. We do not currently anticipate any difficulty from this but nevertheless are speaking with all critical suppliers to ensure continuity of supply.

At this moment in time we consider the impact on our supply chain to be negligible and fully expect our stock holdings in the UK to be sufficient to account for the minor dip in production as a result of the delayed return to work.

This is a rapidly changing situation and we continue to closely monitor events. We will update this statement in the event of any changing circumstance.

For further information, please contact Thomas Pear, Chief Commercial Officer, on 08456 448808.